Black Creek Diversified Property Fund’s Latest NAV
September 17, 2018 | James Sprow | Blue Vault
Black Creek Diversified Property Fund Inc. announced a revised NAV per share which will be their transaction price for all share classes beginning October 1, 2018. The new transaction price for all five share classes (T, S, D, I and E) will be $7.4859 per share. This is equal to the NAV as of August 31, 2018. The purchase price for each share class equals the transaction price plus applicable upfront selling commissions and dealer manager fees.
Interestingly, the NAV as of July 31, 2018, was slightly higher at $7.4971. With no acquisitions or dispositions or other major changes affecting the REIT’s portfolio, why would the NAV fall 0.15%? Looking more closely at the components of total NAV reveals that the value of the REIT’s total investments increased from $2.068 billion to $2.075 billion. The fair value of the REIT’s debt obligations decreased from $1.031 billion to $1.026 billion. The aggregate fund NAV increased from $1.041 billion to $1.045 billion. Each of these minor changes would, other things equal, indicate a positive impact on the NAV. The small decrease in the per share NAV is only explained by the increase in outstanding shares of common stock, along with the partnership units in the operating partnership (“OP Units”) held by third parties. These “Fund Interests” increased from 138,789,000 as of July 31, 2018, to 139,533,000 as of August 31, 2018, roughly 0.5%. This small increase in the Fund Interests outstanding resulted in a small decrease in the NAV per fund Interest, from $7.4971 as of July 31, 2018, to $7.4859 as of August 31, 2018.
Sources: SEC, Blue Vault
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